Oil prices extend losses as fears of Middle East supply disruptions ease
Crude prices eased in Asian trade after reports Saudi Arabia offered extra cargoes via Oman, reducing disruption fears, while concerns over Middle East conflict expansion kept prices above $100.
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The South Korean won weakened to around 1,380 per dollar, hitting a three-week low as the Fed’s rate hike and hawkish guidance lifted the dollar. 00%, its first increase since 2023, and indicated another hike could come later this year, leaving the US-Korea rate gap as wide as 1 percentage point. The wider US-Korea rate differential kept attention on the relative yield advantage of dollar assets, while the dollar index hovered near a seven-week high following the FOMC decision. Additionally, foreign investors remained net sellers of Korean assets, extending a six-straight-session selling streak and adding to demand for dollars.
Meanwhile, oil prices retreated from recent highs as Saudi Arabia offered additional crude cargoes and the damaged East-West pipeline was expected to resume operations within days, offering some relief to Korea’s energy import bill, although Brent remained above $100 a barrel.